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JOINT CIRCULAR

Guiding the implementation of a number of articles of the Government's Decree no. 132/2004/ND-CP of june 4, 2004, detailing the implementation of the Ordinance on industrial mobilization

In furtherance of the Government's Decree No. 132/2004/ND-CP of June 4, 2004, detailing the implementation of the Ordinance on Industrial Mobilization; and after reaching agreement with the Planning and Investment Ministry and the Industry Ministry, the Defense Ministry and the Finance Ministry hereby jointly guide the implementation of this Decree as follows:

I. Payment prices of industrial mobilization products

1. Subjects of application: Industrial enterprises directly engaged in the manufacture and repair of equipment in order to maintain the capacity of chains, and in industrial mobilization drills, maneuvers and practice.

2. Payment prices of industrial mobilization products shall comply with the provisions of the Finance Ministry's Circular No. 05/2004/TT-BTC of January 30, 2004, guiding the management of the prices of goods and services provided under orders placed by the State and paid with the state budget, on the principle that reasonable expenses shall be accurately and fully calculated on the basis of the limits and price frames set by the State and the Defense Ministry at the time of payment, ensuring legitimate interests of enterprises and laborers.

The determination of payment prices of industrial mobilization products shall comply with the provisions of the Regulation on calculation of prices of assets, goods and services promulgated together with the Finance Minister's Decision No. 06/2005/QD-BTC of January 18, 2005.

3. Industrial enterprises shall elaborate price plans for each type of product according to their assigned tasks, then submit them to the Defense Ministry for approval.

II. Management of technological documents already transferred and equipment and instruments assigned by the State to industrial enterprises for operating production chains or repairing equipment and instruments

1. The Defense Ministry shall act as the representative of the State-owner of technological documents already transferred and equipment and instruments assigned by the State to industrial enterprises for operating production chains or repairing equipment and instruments (hereinafter referred collectively to as technological documents and equipment and instruments assigned by the State).

2. Industrial enterprises shall have to manage technological documents and equipment and instruments assigned by the State according to the provisions on management and use of fixed assets in Section II of the Regulation on management, use and depreciation of fixed assets promulgated together with the Finance Minister's Decision No. 206/2003/QD-BTC of December 12, 2003.

Equipment and instruments assigned by the State to industrial enterprises shall not be depreciated during the period of storage, preservation and performance of tasks under the industrial mobilization plans, but shall be entitled to a wear rate according to the provisions of Clause 2, Article 9, Section III of the Regulation on management, use and depreciation of fixed assets promulgated together with the Finance Minister's Decision No. 206/2003/QD-BTC of December 12, 2003.

3. In the course of management and use of technological documents and equipment and instruments assigned by the State, if they are damaged, lost or destroyed, industrial enterprises shall have to make written records thereon, identifying the reasons for such damage, loss or destruction, and take remedial measures as provided for to secure the capability of production readiness and repair of equipment and instruments. The contents of such written records shall comply with the Appendix to this Circular (not printed herein).

III. Depreciation of equipment and instruments assigned by the State and use of depreciation amounts upon the exploitation of their utilities beyond the industrial mobilization plans at industrial enterprises

1. When being allowed to utilize their equipment and instruments assigned by the State beyond the industrial mobilization plans, industrial enterprises shall have to calculate and make depreciations of such equipment and instruments according to the provisions of Section III of the Regulation on management, use and depreciation of fixed assets promulgated together with the Finance Minister's Decision No. 206/2003/QD-BTC of December 12, 2003.

2. Industrial enterprises shall have to use depreciation amounts of such equipment and instruments for reinvestment in service of their maintenance and repair during and right after the exploitation, in order to maintain their technical properties and their readiness for production or repair tasks.

3. Industrial enterprises must open books to monitor depreciation amounts of equipment and instruments and the use thereof, and make and send annual written reports thereon to their superior management agencies (if any) and the Defense Ministry.

IV. Determination of and compensation for harms caused to technological documents already transferred and equipment and instruments assigned by the State upon the issuance of decisions on their recovery to such documents, equipment or instruments

1. When decisions on recovery of technological documents and equipment and instruments assigned by the State are executed, if there is any harm (damage, loss or destruction), concerned industrial enterprises or individuals shall have to pay compensation therefor on the following principle:

a/ For harmed technological documents, compensation must be paid to cover all expenses for the restoration or recompilation of such technological documents with all the contents as previously received by the industrial enterprises.

b/ For harmed equipment and instruments, compensation must be paid to cover all expenses for procurement, manufacture, repair or restoration of such equipment and instruments, ensuring their integrity as before they are harmed.

2. Bases for determining compensation levels

a/ Written records on recovery or receipt of State-transferred technological documents and State-assigned equipment and instruments;

b/ Written records on handover of technological documents, or equipment and instruments assigned by the State to industrial enterprises;

c/ Accounting records of equipment and instruments: Historical costs and residual values;

d/ Written certification of the loss or destruction of technological documents, or equipment and instruments.

3. Methods of determining compensation levels

a/ The Defense Ministry's functional agencies which have been assigned by the Defense Minister the tasks of transferring technological documents or authorized by the Defense Minister to organize the take-over test of technological chains for manufacturing and repairing equipment, shall have to set up councils for determining compensation levels. Such a council shall be composed of representatives of a technical agency, a financial agency, the industrial enterprise and individuals involved in the compensation (if any), with the head of the functional agency setting up the council being the council chairman.

Basing themselves on the documents specified at Point 2, the councils shall determine compensations for harmed technological documents, equipment and instruments, then report thereon in writing to the Defense Minister for decision.

b/ The determination of compensations for harmed equipment and instruments shall comply with the provisions of Point 3.2, Section 3, Part II of Joint Circular No. 234/2003/TTLT/BQP-BTC of September 17, 2003, of the Defense Ministry and the Finance Ministry, guiding the implementation of regimes and policies toward vehicle owners whose vehicles are mobilized to directly take part in industrial mobilization drills, maneuvers and inspection of mobilization and combat readiness; to reinforce the Army's regular forces and mobilize forces to serve the performance of above-said tasks.

4. Liability to pay compensations

a/ Industrial enterprises shall be liable to pay compensations for harms caused to technological documents, equipment and instruments assigned by the State. Such compensations shall be deducted from their production development funds.

b/ Individuals shall bear responsibility to pay compensations for harms caused by them to technological documents, equipment and instruments assigned by the State;

c/ Where harms are caused by force majeure circumstances (natural calamities, enemy sabotage, fires and other force majeure circumstances), no compensation shall be paid.

V. Regimes and policies toward vehicle owners whose vehicles are mobilized and owners of other assets whose assets are used in drills, maneuvers or in service of the relocation of industrial mobilization chains

1. Subjects of application:

a/ Vehicle owners whose vehicles are mobilized to take part in industrial mobilization drills or maneuvers or to serve the relocation of industrial mobilization chains;

b/ Owners of other assets whose assets are mobilized to take part in industrial mobilization drills or maneuvers or to serve the relocation of industrial mobilization chains.

2. Conditions for enjoying regimes and policies

a/ Vehicles and other assets are mobilized under plans already approved by ministers, heads of ministerial-level agencies, presidents of provincial-level People's Committees or heads of corporations;

b/ Vehicles must be of the types stated in mobilization plans; other assets must be consistent with those listed in mobilization plans. Where to be-mobilized vehicles or assets are changed, such change must be agreed in writing by authorities competent to issue mobilization decisions and approve mobilization plans;

c/ There must be written records on the technical conditions of vehicles and the state of other assets at the time of mobilization handed by their owners to their users;

d/ Vehicles and other assets are used for proper purposes during the mobilization period.

3. Regimes and policies toward vehicle and asset owners; bases for determining levels of payment; methods of calculating payments and payment procedures shall comply with the provisions of Sections 1, 2, 3 and 4, Section III of Joint Circular No. 234/2003/TTLT-BQP-BTC of September 17, 2003, of the Defense Ministry and the Finance Ministry, guiding the implementation of regimes and policies toward vehicle owners whose vehicles are mobilized in drills, maneuvers or inspection of mobilization and combat readiness; reinforce the Army's regular forces and mobilize forces to serve the performance of above-said tasks.

4. Budgets

a/ Local budgets shall fund the implementation of regimes and policies towards vehicle or asset owners whose vehicles or assets are mobilized in drills or maneuvers for performance of local industrial mobilization preparation tasks, or mobilized by localities in service of the relocation of industrial mobilization chains (including those of industrial enterprises not managed by provinces) in practicing the industrial mobilization.

b/ The central budget shall fund the implementation of regimes and policies towards vehicle or asset owners whose vehicles or assets are mobilized in drills or maneuvers for performance of industrial mobilization preparation tasks of the Defense Ministry, other ministries, ministerial-level agencies or corporations, or to serve the relocation of chains in practicing the industrial mobilization of industrial enterprises under such ministries, ministerial-level agencies and corporations (except for vehicles and assets mobilized by localities mentioned in Item a of this Point);

c/ Where individuals who use vehicles or assets mobilized in industrial mobilization drills or maneuvers and serve the relocation of industrial mobilization chains cause loss of or damage to or destroy such vehicles or assets, they shall have to pay compensations therefor according to current provisions of law.

VI. Supports for production activities of enterprises after they fulfill the tasks of practicing industrial mobilization

1. After fulfilling the tasks of practicing industrial mobilization, industrial enterprises shall, apart from being allocated funds from the state budget for the dismantlement, packaging and loading/unloading of their production chains, the repair of malfunctions caused during the transportation, installation and operation thereof in order to restore them to their pre-relocation state and supplied with sufficient vehicles for transporting laborers and equipment and instruments involved in the chains back to the original locations, also enjoy state budget supports for payment of salaries to workers involved in industrial mobilization chains during the suspension of production for performance of the above-said activities.

2. Budgets:

a/ The central budget shall provide supports for industrial enterprises under ministries, ministerial-level agencies and corporations after they fulfill the tasks of practicing industrial mobilization.

b/ Local budgets shall provide supports for industrial enterprises managed by localities after they fulfill the tasks of practicing industrial mobilization.

VII. Organization of implementation

1. This Joint Circular takes effect 15 days after its publication in "CONG BAO."

2. Any problems arising in the course of implementation should be promptly reported by ministries, ministerial-level agencies, provincial/municipal People's Committees, corporations, industrial enterprises and the army units to the Defense Ministry and the Finance Ministry for study and settlement.